Indiana – Indiana renters comparing advertised home prices could face a different calculation once mandatory fees entered the picture. A $48.5 million settlement announced by Attorney General Todd Rokita targets that gap between the listed rent and the amount tenants were actually required to pay.
The agreement with Progress Residential, LLC and Pretium Partners, LLC also reaches beyond rental listings. It requires changes involving security deposits, property conditions, maintenance complaints and tenants’ ability to challenge charges or share their experiences.
The companies, described as among the nation’s largest owners and operators of single-family rental homes, agreed to monetary relief totaling $48.5 million for consumers nationwide.
The settlement resolves allegations of deceptive and unfair rental practices affecting tenants in Indiana and other states.
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Rokita’s office joined the bipartisan enforcement action with the Federal Trade Commission, the Arizona and Colorado attorneys general, and the Utah Division of Consumer Protection.
According to Rokita, Indiana’s team played a pivotal role in the investigation and in developing claims under state consumer protection laws.
“We will always welcome investment in housing and recognize the important role private capital can play in increasing opportunities for Hoosier families,” Attorney General Rokita said.
“But no company, regardless of size or financial backing, gets a free pass to mislead consumers, impose hidden charges or treat tenants unfairly. This settlement sends a clear message: If you do business in Indiana, you must deal honestly and comply with the law.”
The complaint, filed in the U.S. District Court for the Northern District of Georgia, alleged that advertised rental prices failed to reflect tenants’ actual required costs. It also alleged hidden or improperly disclosed fees, mishandled security deposits, misleading descriptions of rental homes, restrictions on consumer reviews and inadequate responses to maintenance problems and tenant complaints.
Under the settlement, advertisements and listings must clearly show the total monthly rental price. Mandatory fees must be prominently disclosed before a prospective tenant commits to renting. The companies must also stop misrepresenting what rental-related fees cover, how much they cost and when they apply.
Security deposits are another central part of the agreement. The companies must stop withholding money for ordinary wear and tear and provide detailed, itemized explanations when making deductions. They must retain records and photographs supporting those deductions, with charges reflecting the tenant’s actual responsibility and complying with state law.
The requirements also address what renters are told about a home before moving in. The companies must stop making misleading claims about a property’s condition, safety, cleanliness or readiness for occupancy.
Once tenants move in, the agreement calls for improved customer service surrounding maintenance requests and complaints. Clearer communication and ways to escalate unresolved concerns are among the required changes, addressing another area identified in the enforcement action.
Tenants’ ability to speak publicly and question their bills receives protection as well. The companies must stop enforcing contractual terms that unlawfully restrict reviews or accounts of rental experiences. They must also prohibit improper charges that could trigger late fees, eviction threats or other penalties, and ensure renters can dispute fees while retaining the ability to pay rent.
For Indiana, the case forms part of work by the attorney general’s Consumer Protection Division and Homeowner Protection Unit to hold large institutional housing businesses to the rules that apply to landlords operating throughout the state.
The $48.5 million is nationwide consumer relief, rather than an amount designated solely for Indiana renters. Those funds will be used as directed by the Stipulated Order.
Hoosiers who suspect scams or attempted scams can submit a complaint to the attorney general’s office at indianaconsumer.com or call 1-800-382-5516. Alongside the financial relief, the settlement requires changes reaching from the first advertised price to the final accounting of a tenant’s security deposit.
